How to Know If Your Singapore Accounting Records Are in Good Standings
The backbone of every business lies in its finances. The success achieved by any kind of business – large or small, will always be a factor of how the business manages its finances, and if you are operating in a country with tough rules and regulations on company finances and taxation like Singapore, then you have every reason to be very thorough with your Singapore accounting records.
It is imperative to have an organized accounting bookkeeping practice so that you will have a clear picture of the state of your business finances, and most importantly, you will be in a position to comply with all the tax regulations of the state. With that said, here is a brief look of how to know, or how you can tell if your bookkeeping for your Singapore business is in order, and what you need to do should you find that something is slightly off.
When you are working with a professional accountant
In the beginning, it may be possible for you take care of all your business books, but as time goes by, the numbers and their complexity may begin to increase. Again, your schedule may become tight as you focus on the other parts of the business, such that you might find yourself relaxing as far as keeping your accounts straight is concerned. Under such circumstances, it is very easy to leave records not updated for a long time, with the result being that you will have a misrepresentation of the company finances.
However, when you work with a professional accountant, you won’t have to worry about the Singapore accounting records being out of place simply because you will have someone dedicated to looking at them on a regular basis. Accounting professionals know how to adhere to best practices and will always ensure that all the records are in order, given that they also use very reliable accounting software to keep track of every financial transaction involving the company. As such, you can always rest assured knowing that your books will always be in good standings at all times.
When you separate your business and personal finances
If you can’t tell whether a given expenditure is for business or it was for your home, then you are likely to have problems in having your Singapore accounting records in good standings. It is imperative that you don’t mix business finances with personal finances if you don’t want any confusion in the future, especially at the time of filing for taxes.
It is sad to observe that hundreds of small businesses don’t have a line between the two and this is usually a great source of distress when the need arises to know what the company has spent, any money lost, profits made and to keep the records clean for the purposes of tax compliance. Therefore, if you are not separating your personal and business finances, then just know that your business books are not in good order, and it is high time you did something about it.
When you create a budget plan in advance
Creating a budget plan in advance is a vital aspect of planning for any business, and it is one you must adopt if you desire to have your Singapore accounting records in good standing.
Having a budget ahead of time is never a waste of time as many small business owners tend to think. It brings a lot of clarity to the business since it is an effective way for business owners to forecast the future expenses likely to be incurred by the business.
With a budget, you will not just have a clear picture of how you intend to spend the company’s finances, but also it can be used a guide for making sound financial decisions for the business. As far as keeping the company accounting records is concerned, a budget will help you know whether or not the company has the finances needed to fund the desired operations. It can also give a brief guide into what the company will be expected to pay in terms of taxes because the company can forecast when they are likely to spend in a given financial year.
When you are proactive
When you stay proactive, no single aspect of your business will surprise, and this includes the Singapore accounting records for your business. You don’t have to be doing all the business calculations to be proactive, but you can instruct your accountant or the firm you outsourced the accounting services to, to be providing you with regular official closes of the business books, with full reconciliations. This will save you from waking up one morning to huge surprises in your business finances. You will always stay on top of things and know what is happening with every penny channelled into the business.